CZK: Koruna Holds Steady, Babiš Vows To Keep '26 Deficit Target Unchanged

EUR/CZK trades flat at 24.314 as Czech markets re-open after the National Day. The technical picture remains unchanged, with bulls looking for a clean break above the nearby 50-DMA (24.356) and bears eyeing recent cyclical lows around the 24.2 mark.

• Andrej Babiš reaffirmed his pledge to stick to the outgoing government's 2026 deficit target of CZK286bn amid a 'huge hole' of around CZK80bn in funding, which in his view will require substantial amendments to the fiscal plan left behind by the Fiala administration. In a video posted on X, Babiš said that the deficit target won't be changed 'because it's not possible for time reasons'. He noted that his party's coalition agreement with the SPD and Motorists is virtually ready and will be signed when parliament re-opens on Monday.
• CZGB yields mostly sit a tad higher across the curve, with equity benchmark PX Index barely changed on the day. The respective starting points were affected by yesterday's market closure and subsequent catch-up moves.
• The CZSO will release advance Q3 GDP data tomorrow morning. Consensus is for growth to have slowed to +2.3% Y/Y from +2.6% in Q2, with sequential growth seen at +0.3% Q/Q versus +0.5% prior.